Responsible for the government’s Economic Policy, Guilherme Mello says he hopes that the “communication” on the fiscal part will contribute to reducing the quotation
The Secretary of Economic Policy at the Ministry of Finance, Guilherme Mello, said this Thursday (18.Jul.2024) that the high level of the dollar against the real is linked to a “a certain remnant of the climate of uncertainty”. He also stated that he expects the fiscal aspect to contribute to the reduction of the exchange rate of the US currency, which closed on the day at R$5.59, up 1.89%.
“I am convinced that this will be overcome with the communication actions that we will carry out over the next few months and we will once again have an exchange rate level closer to what it was, for example, in April, when we followed the rhythm of international currencies.”he said.
The statement was given in an interview with journalists, when commenting on the data presented in the MacroFiscal Bulletin. The economic team maintained the GDP (Gross Domestic Product) growth projection at 2.5%.
Mello said that the uncertainties are linked to domestic and external factors. He stated that the rise of the dollar was stronger from May onwards with a “displacement” in relation to other countries.
“You had an increase in uncertainty around monetary policy with the change in guidance [em referência à sinalização do Banco Central sobre medidas a serem tomadas quanto à política monetária] that the Central Bank adopted, change of president [sobre o comando da autarquia] […] Also, from a fiscal point of view, an increase in the level of uncertainty, in particular regarding the sustainability of the fiscal framework and the levels of primary result to be achieved”he stated.
The secretary also said he believed there was no “structural change” to increase the level of uncertainty. He also stated that the country is “very significant volume of foreign exchange reserves”.
Mello also stated that the tax issue will bring “prices, whether exchange rates or interest rates, at a level closer to what we believe could become something more structural in the Brazilian economy”.
The economist said that the Treasury works “hard to recover the level of revenue” and mentioned compensation with the exemption of the 17 sectors.
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